Morgan Stanley says EU banks are losing ground as Mifid II bites

UBS the 'exception' as big Wall Street banks pull ahead in the market for European equities trading, analysts say

European investment banks that have invested heavily in their stock trading divisions are still losing ground on US rivals, as new financial regulations begin to skew the market towards the largest banks.

Analysts at Morgan Stanley say there are early signs that the European Union's revised Markets in Financial Instruments Directive, which has changed the way equities and other financial assets are traded, is favouring Wall Street banks operating in the region.